Petronas Launches an Oil and Gas Tender | OilPrice.com
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Breaking News:
Malaysia’s state energy company Petronas has launched an oil and gas tender for five exploration blocks in the offshore Malay and Penyu Basins, and the Sandakan Basinthe company said in a statement.
Petronas referred to the basins as “diverse geological plays with significant resource potential”, adding that “three DRO [discovered resource opportunity] clusters are available in shallow waters near existing infrastructures and potential gas market, enabling rapid monetisation.”
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The company also reported its 2024 bidding round had concluded with a total of 14 production-sharing agreements signed with 12 operators.
Petronas reported an average daily production of 1.7 million barrels of oil equivalent and said last month it wanted to increase this to 2 million barrels daily over the next three years. The increase in hydrocarbon production is expected to come from key development projects including Kasawari, the Gumusut-Kakap Redevelopment, Bekok Oil Redevelopment, Tabu Redevelopment, and Seligi Redevelopment, according to the national oil company of Malaysia.
Petronas plans to drill 69 development wells this year, up from 56 development wells in 2024. The company also wants to complete 15 exploration wells this year and another 15 in 2026, in both shallow and deep waters.
In related news, the chief executive of the company earlier this month announced plans to slash several thousand jobs, describing the unpopular move as necessary to ensure the survival of the company—not because it was troubled but because it had too large administrative personnel.
Muhammad Tufik noted that new oil and gas project development was going to become harder in the future due to geological challenges, and these would eat into Petronas’ revenues generated from production-sharing agreements.
This is because it would need to offer fatter shares to its partners in these projects to motivate their participation and assumption of part of the risk, the CEO explained. Currently, Petronas takes home over 20% of the revenues under PSAs. In the future, this would shrink to the lower double digits, according to the chief executive.
By Irina Slav for Oilprice.com
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